Question
You are an analyst and start to see a trend with US Financial Institutions. Youve notice almost all of them in the past year have
You are an analyst and start to see a trend with US Financial Institutions. Youve notice almost all of them in the past year have shifted their balance sheet to become Net Long. In each of the scenarios below, holding everything else constant, what are they most anticipating would happen? Open Market Purchase or Sale (OMO)? Increase or Decrease in the Discount Rate (DR)? Increase or Decrease in the Reserve Requirement (RR)? Increase or Decrease in the Interest on Reserves (IOR)? Increase or Decrease in taxes on US investments? Increase or Decrease in tariffs on US imports? Federal Budget Deficit or Surplus? Balance of Trade Deficit or Surplus? Increase or Decrease in the Velocity of Money?
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